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Environmental Issuesin the Service Industry

Basic question:

The service industry does not manufacture any product. So, what could possibly be its impact on the environment?

The short answer is:

The service industry uses buildings that require heating, ventilation, water, etc. The tourism industry, in particular, impacts land by its infrastructure. Healthcare and food services generate solid waste.Banks, schools and governments use computers and lots of paper.

The service industry as part of the overall economy

The service industry is a large part of the economy.

28%12%60%India

32%25%43%China

64.5%34.0%1.5%Switzerland

72.1%26.4%1.4%Japan

62.2%34.1%3.7%Mexico

77.4%20.3%2.2%France

69.6%28.4%2.0%Canada

76.2%22.8%0.9%United Kingdom

79.2%19.6%1.2%United States

Tertiary Sector

Service

Secondary Sector

Manufacturing

Primary Sector

Agriculture

Source: CIA World Factbook, 2009

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… and in the US it keeps growing at about 4% a year

Types of service industries:

GovernmentSchools, colleges & universitiesRestaurants, hotels & resorts

Health carePost Office, FedEx, UPS

CommunicationsAssociations

RetailBanking

ConsultingPrisons

etc.

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What do companies actually do?

Special characteristics of the service industry:

The service industry is an ever growing sector of the economyIn a more developed the nation, the service industry is a greater % of the GDP.

Materials are all accessory to the activity,but revenues are pegged to service rendered.

Dematerialization & profitability are largely decoupled Difficulties at corporate level

Most materials are the same regardless of the nature of the service:Services are labor intensive people people’s needs:

Heating & air conditioning of buildingsWaterFoodLightingCleaning of surfaces chemicalsCommunications telephones, computers, fax machines, etc.Documents printing paper, storageTransportation vehicles, parking

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Case A:New administrative building9-floor tower24,000 m2 floor areaPrefabricated reinforced concrete framework with pre-stressed slabsDouble-glass façadeHeating: 15 kWh/m3/yr

Case B:New high-end 5-story office building15,600 m2 floor areaIn-situ cast concrete Masonry façadeHeating: 25 kWh/m3/yr

Case C:New office 4-story building4,400 m2 floor areaSteel frame with prefab concrete slabsConcrete sandwich-panel exteriorHeating: 36 kWh/m3/yr

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Construction Use Disposal

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behavior

Local evidence that behavior matters:

The students of the Sustainable Living Center, currently residing in North Hall, have worked on reducing their electric demand, chiefly by:

- not using the electric cloth dryer

- being thoughtful with appliances, esp. refrigerator, lights and computers.

RESULT:

58% reduction in electricity consumption compared to previous residents!

Behavioral68%

Building32%

Estimate:

Source: Hannah Dreissigacker’s 2009 Honors Thesis

Electricity consumption in a residenceaccording to level of human control

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Important question:

What if we change X to an office building?

X = Where the electricity comes fromX = How heating is providedX = How is wastewater treatedX = Switching to recycled materialsetc.

Nomenclature:

Electricity mix: optimistic = 42% hydro, 58% nuclearpessimistic = 95% coal, 5% other

Heating energy mix:optimistic = 71% bio, 19% recycled paperpessimistic = 95% coal, 5% other

Recycled materials: optimistic = 50 to 90% recyclingpessimistic = 0% recycling

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A look at the food-service industry

Food-service industry in a nutshell:

$18 billion dollars (delivery only, not counting upstream production of food) 9.2 million employees, in 2005 (US)

At the top of services industries for the highest energy consumption, with health care.

The food industry is a major consumer offood + its packagingwaterelectricity

and a major producer ofsolid waste (food scrap, containers of all sorts)wastewater.

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etc.

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Some tidbits

Since 1991, McDonald’s USA has implemented a Waste Reduction Action Plan (WRAP), which, among other things, - requires that all suppliers package their supplies in corrugated boxes

with a minimum of 40% recycled content- made the switch from polystyrene-foam clam shells

to lightweight cardboard containers and lightweight waxed paper wrappers.

Hilton Hotel in Brunswick, NJ sends its food waste to Enviro-Feed, which sterilizes the scrap and turns it into dry pellets for animal feed.

The Mohegan Sun Casino (on Indian reservation in Uncasville, CT) sends its food waste to a nearby pig farm and saves about $200,000 a year. The 398 tons of cardboard boxes are sent to a recycling company, for which it makes over $33,000 a year. The 52 tons of cooking grease go to another company that uses it in making animal feed, saving an additional $3,000 a year to the casino.

The Saunders Hotel group in Boston has made improvements across the board, from upgraded windows to recycling old tablecloths into chef’s aprons.

Practical rules distilled from experience in the food-service industry

1. Get the staff on boardStaff are where the “rubber hits the road” – They can have excellent ideas.

2. Reduce food wasteCompost food waste or make arrangements with an animal-feed companyPay attention to packages in which food arrivesSeparate waste oil from frying oil

Waste oil can be turned into soap and cosmeticsUsed frying oil can be used as a diesel fuel.

3. Reduce water consumption (especially during summer months)Thaw frozen food in the refrigerator, not under running water (planning required)Cook vegetables in the minimum of water, then use cooking water as soup stockAsk customers if they want a glass of water instead of serving it automaticallyUse a water-efficient dishwasher and only with full loadsInstall water-efficient toilets and check for leaks.

4. Reduce solid wasteFind uses for old tablecloths and broken dishwareOffer biodegradable utensils made from renewable materialsGet local customers to use returnable “doggy bags”.

5. Mind the electrical consumptionUse compact fluorescent bulbs (both indoor and outdoor)Focus light where neededUse daylight if appropriateInstall timers in storage rooms and bathroomsUse energy-efficient appliances.

etc.

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Also: provide local and organic foods in season – A great example in North Carolina

RIVER STREET MARKETin Carborro, North Carolina (USA)

Starting with a block grant from the municipality, an enterprising group set out to put Carborro on a sustainable track. The nucleus is a member-owned (cooperative) foodstore. Around it are a restaurant and cultural attractions.

Through its store, the Weaver Street Market promotes local produce, natural foods and reduction of consumption. The emphasis on local, organic produce has a trickle effect: enhanced sense of place, self sufficiency, sustainable farming practices, protection of local water resources, etc.

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A look at the hospitality industry

Accounts for 9.4% of total energy consumption in buildings, or 0.5 quadrillion BTUs/year(125,000 BTUs/ft2. yr compared to the average of 90,500 BTUs/ft2.yr)

Tourism is one the fastest growing sectors of the economy.Worldwide: $2 trillion/year, occupying 15% of the economically active population.

This growth has been accompanied by significant “land development”. Ironically, pristine locations have been cleared for resorts and facilities to accommodate tourists who seek a “secluded and scenic space”!

Same issues as for most other service sectors:UPSTREAM

energy consumptionwater consumptionpackaging

DOWNSTREAMsolid wastewastewater (release of raw sewage in poorly regulated third-world countries)atmospheric emissions

INDIRECTimpact on local communities (water shortages, increased flooding, crime)development of access infrastructures (airports, roads, parking lots, power plants)

Water usage in the hospitality industry is significantly greater than domestic use, and it does not get better with larger hotels.

100 – 130300,000 – 500,000Over 400Hotel

40180,000 – 250,000300 – 400 Hotel

27120,000 – 180,000200 – 300Hotel

1725,000 – 100,00050 – 200Hotel

8.4256AveragePrivate house

(in liters/room)(liters per month)

Average use per nightWater consumptionNumber of roomsWater consumer

Sources: Federation of Malaysian Manufacturers, The Sustainable Penang Initiative, EMTHIR, 1998

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GREEN ARCHITECTUREhttp://w

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Because of the generic characteristics of the service industry, we should in principle be able to develop generic principles that are applicable across a variety of service industries.

Such principles include: DEMATERIALIZATION

GREEN ARCHITECTURE

CULTURE OF STEWARDSHIP

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What can be done:

1. Reduce impacts (= doing Pollution Prevention)

Immediately pick the low-hanging fruits- Change light bulbs- Recycle office paper- Curb on upstream packaging- etc.

Medium term reconsider purchase of capital items (computers, etc.)

Long term construct green buildings

2. Dematerialization

Ask how certain activities can be conductedwithout materials (ex. email)with less material (ex. printing on both sides of the paper)with less energy (ex. teleconferences to replace travel)

Harder level to cross,

where many companies give up

3. “Culture of Stewardship” (Creighton, 1998):

Institutional commitment (via mission statement or environmental policy)

Make people be aware of what impact their activity is having(metering of energy and water consumption)

Coordinate efforts across the institution(uncoordinated actions can be counterproductive)

Take the long-term view

Set a course with intermediate targets and monitor progress toward these targets

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Culture of Stewardship: Mind your behavior!

Behavioral96%

Building4%Behavioral

18%

Building82%

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Electricity Hot Water Heat City Water

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Behavioral

Building

Behavioral68%

Building32%

Source: Hannah DreissigackerHonors Thesis, June 2009Thayer School of Engineering

Space heating Electricity consumption Water consumption

Culture of Stewardship → “Homo Ecologicus”